London Mayor backs India’s verdict to open up insurance, retail to FDI

London Mayor Boris Johnson has backed India’s verdict to open up the insurance and multi-brand retail sectors for FDI, arguing it might augur well for the poor even as he suggested that India can experiment with more ‘openness’.

Mr. Johnson is leading a business delegation to India. recently, addressing at the Indian School of Business, he said, “If a British insurance company is able to help reduce premiums for households for medical insurance for an Indian person with modest income, then that person will be able to spend the larger share of his wealth on other forms of consumption. That would benefit the economy.”

Speaking on FDI in retail, he said, “If a multiple-brand retailer can help people access food cheaply and securely with less anxiety about the price then again you are helping to increase, not diminish the wealth of some of the poorest people in the country.”

Furthermore, in a suggestive approach, he said, “I would humbly and respectfully suggest there are more ways in which India could experiment with more openness.”

Be known that the government has recently decided to move with its proposal to raise FDI (foreign direct investment) ceiling in insurance to 49% from existing 26%. It also had allowed 51 per cent foreign direct investment (FDI) in multi-brand retail but left it to the states to permit opening of foreign funded stores.

Mr.Johnson said the critical thing in a global economy is to find the place and people who will add value in the most efficient and competitive way.